CryptoQuant, a leading cryptocurrency analysis company, provided information about the recent rise in Bitcoin's price.
According to analysts, Bitcoin suddenly caused a mass liquidation of $ 27 million with its recent rally. Analysts said that for a subsequent short squeeze to be successful, it must be accompanied by upward volatility along with spot purchases.
In the recent short squeeze cases on December 6, 2023 and January 9, 2024, large short positions worth over $30 million were liquidated. This pushed the price higher but failed to spark a strong uptrend and the price soon pulled back and corrected.
CryptoQuant warns that if upward volatility does not occur quickly, similar to these two cases, we could see sideways movements for a week or so, followed by a price correction. Ultimately, a major upward move in a short period of time could be the key to sustaining the uptrend going forward, according to analysts.
On the other hand, while Bitcoin has been moving sideways for several days, altcoins such as Bitcoin may also likely see a pump market, according to analysts. CryptoQuant recommended closely monitoring Kimchi Premium, Funding Rate and Short-term wallets profit and rates.
*This is not investment advice.